Ocean Yield ASA — Q4 2017 Earnings Presentation
20 slides from Ocean Yield ASA's earnings presentation, Feb 16, 2018
Slide 1: Q4 2017 Presentation
Q4 2017 PRESENTATION 16th FEBRUARY 2018
Slide 2: Q4 2017 Financial Highlights
Q4 2017 FINANCIAL HIGHLIGHTS • Quarterly dividend of USD 0.1895 per share - Increase of USD 0.10 cents vs. Q3 2017 - USD 0.758 per share annualized - Dividend yield of 8.4% p.a. - Declared cash dividends for 18 consecutive quarters • EBITDA was USD 80.4m vs. USD 80.6m in Q3 - EBITDA adjusted for fin
Slide 3: Recent Events
RECENT EVENTS • Investment in three Suezmax crude tankers with long-term contracts to Nordic American Tankers Ltd. • Investment in four VLCC crude tankers with long-term charters to Okeanis Marine Holdings SA and 5-years sub-charters to the shipping arm of a large industrial conglomerate • Investmen
Slide 4: Acquisition of Three Suezmax Crude Tankers with 10 Years Charter
ACQUISITION OF THREE SUEZMAX CRUDE TANKERS WITH 10 YEARS CHARTER TRANSACTION DETAILS Purchase price USD 55.7m per vessel / total of USD 167.1m Seller’s credit USD 12.5m per vessel / total of USD 37.5m Net purchase price USD 43.2m / total of USD 129.5m Purchase obligation After year 10 Charter durati
Slide 5: Acquisition of Four VLCC Crude Tankers with 15 Years Charter
ACQUISITION OF FOUR VLCC CRUDE TANKERS WITH 15 YEARS CHARTER TRANSACTION DETAILS Purchase price USD 83.75m per vessel / total of USD 335.0m Seller’s credit USD 9.50m per vessel / total of USD 28.5m Net purchase price USD 74.25m per vessel / total of USD 297.0m Charter duration 15 years Charter type
Slide 6: Acquisition of Two Dry Bulk Handysize Vessels with Long Term Contracts
ACQUISITION OF TWO DRY BULK HANDYSIZE VESSELS WITH LONG TERM CONTRACTS TRANSACTION DETAILS Net purchase price per vessel USD 18.0m Net purchase price total USD 36.0m Charter duration 12 years Purchase obligation End of year 12 Charter type Hell & high water bareboat Charterer Louis Dreyfus Armateurs
Slide 7: Update on Connector
UPDATE ON CONNECTOR • Secured new employment for the vessel Connector - Time Charter contract with start-up about 20th February - Firm period of 130 days, plus 130 days extensions in charterer’s option - Will conduct cable lay operations for Ørsted’s Hornsea Project One offshore wind farm project -
Slide 8: Update on Dhirubhai-1
UPDATE ON DHIRUBHAI-1 • Production uptime of close to 100% in Q4 2017 • Only USD 20m debt outstanding on the vessel at the end of Q4 2017, and the debt will be fully repaid by September 2018 • Production on the MA field may continue beyond the end of the firm contract in September 2018 - Uncertainty
Slide 9: Charter Backlog by Client End of Q4 2017, Adjusted for Transactions After Year End
CHARTER BACKLOG BY CLIENT END OF Q4 2017, ADJUSTED FOR TRANSACTIONS AFTER YEAR END EBITDA* BACKLOG OF USD 3.5 BILLION FLEET Tankers 22 9% Oil-service 7 20 % 3% 4% 4% Container vessels 6 5% 2% Avg. remaining charter tenor of 11.5 years Car Carriers 6 10 % 15 % 6% Gas Carriers 2 2% 2% 11 % 7% Dry Bulk
Slide 10: Quarterly EBITDA and Net Profit
QUARTERLY EBITDA AND NET PROFIT EBITDA PER QUARTER (USDM) 80.6 80.4 74.4 74.3 71.2 68.7 63.4 56.6 58.7 55.2 56.0 56.4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2015 2016 2017 NET PROFIT PER QUARTER (USDM) 36.8 32.7 31.3 30.9 30.6 28.1 28.3 25.8 25.5 22.7 18.6 0.7 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2015 2
Slide 11: Adjusted EBITDA and Net Profit
ADJUSTED EBITDA AND NET PROFIT EBITDA ADJUSTED FOR FINANCE LEASES (USDM) 89.3 89.3 82.8 83.1 79.1 75.6 69.3 63.6 57.3 58.4 59.6 59.8 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2015 2016 2017 ADJUSTED NET PROFIT (USDM) 36.9 36.3 33.4 33.4 33.5 34.4 31.6 28.0 29.0 26.8 27.1 27.6 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2
Slide 12: Declared Cash Dividends for 18 Consecutive Quarters
DECLARED CASH DIVIDENDS FOR 18 CONSECUTIVE QUARTERS ADJUSTED EARNINGS PER SHARE (USD CENTS)¹ DIVIDEND YIELD 24.66 24.36 23.94 23.21 22.34 22.41 22.99 8.4%² p.a. 21.28 20.55 20.25 19.73 19.86 ADJUSTED PAY-OUT RATIO Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 82% 2015 2016 2017 DIVIDEND PER SHARE (USD CENTS)
Slide 13: Profit & Loss
PROFIT & LOSS INCOME STATEMENT COMMENTS Q3 Q4 • Revenues: Stable revenues as Amounts in USD million 2017 2017 no new vessel deliveries in Q4 Operating revenues 66.6 66.8 Finance lease revenue 16.4 16.2 • Operating expenses: USD 0.3m Income from investments in associates 5.8 6.4 related to Connector
Slide 14: Adjusted Net Profit
ADJUSTED NET PROFIT ADJUSTMENTS Q3 Q4 Amounts in USD million 2017 2017 Net profit 31.3 30.9 - Impairment charges - - - Foreign exchange gains/losses 41.4 (10.0) • Bond and bank loans in NOK - Change in fair value of financial instruments (44.4) 10.9 - Changes in deferred tax, net 7.9 2.6 • Non-cash
Slide 15: Balance Sheet
BALANCE SHEET INCOME STATEMENT Q3 Q4 Q3 Q4 ASSETS 2017 2017 EQUITY AND LIABILITIES 2017 2017 Goodwill 9.8 9.8 Equity to holders of the parent 815.0 821.1 Vessels and equipment 1 340.7 1,310.8 Non-controlling interests 10.0 10.4 Investments in associates 186.1 188.7 Total equity 824.9 831.5 Finance l
Slide 16: Strong Liquidity Position
STRONG LIQUIDITY POSITION CASH AND SECURITIES AVAILABLE FOR SALE PER Q4 2017 (USDM) 197 49 148 50 99 Cash Available Total available Bonds in Total available drawing facilities cash American liquidity Shipping Company
Slide 17: Committed Capex, Net of Seller's Credits
COMMITTED CAPEX, NET OF SELLER’S CREDITS CAPEX AND EXPECTED BANK FINANCING 2018/19 (USDM) 463 36 297 380 83 130 Nordic Okeanis Louis Dreyfus Total capex, Expected Expected cash American Marine Armateurs net of seller’s bank financing payments Tankers Holdings credits COMMENTS • Strong interest from
Slide 18: Interest Rate Exposure
INTEREST RATE EXPOSURE • Strong protection against rising interest rates - Floating interest rate clauses in 31 out of 46 charter contracts - Fixed rate interest bearing loans - Interest rate swaps • Expect coverage to increase with time as new transactions typically include floating interest rate c
Slide 19: Outlook
OUTLOOK • Expects that 2018 will be an attractive entry point in several shipping segments - Newbuildings & second hand values appears to have bottomed out • Well positioned to continue to expand the portfolio of vessels - Increased volume and quality of new transactions - Access to competitive fund
Slide 20: Investor Relations
INVESTOR RELATIONS Marius Magelie, SVP Finance & IR +47 24 13 01 82 mm@oceanyield.no www.oceanyield.no/IR